A Closer Look at SunPower’s 1Q16 Shipments and Shipments Outlook
What SunPower's 1Q16 Earnings Could Mean for Investors
Shipments by segment
SunPower (SPWR) reports revenue under its Distributed Generation and Power Plant segments. The Distributed Generation segment includes revenue from residential and commercial shipments. SunPower’s (SPWR) 1Q16 shipments increased by nearly 8% on a YoY (year-over-year) basis.
According to the company’s filings, SunPower deployed a total of 315 MW (megawatts) during 1Q16, as compared with 266 MW in 1Q15.
Revenue recognition
Out of 315 MW deployed, the company recognized a total of 236 MW in its 1Q16 revenue, as compared with 219 MW in 1Q15. MW recognized under its Power Plant segment came in at 146 MW, as compared with 115 MW during 1Q15 and 218 MW during 4Q15.
Under its Commercial segment, the company recognized 30MW in its revenue compared to 26 MW in 1Q15. However, SunPower recognized 60 MW under the Residential segment in its 1Q16 revenues, as compared with 78 MW in 1Q15.
SunPower’s shipments outlook
For 2Q16, SunPower expects to deploy 75MW–85MW under its Residential segment. For 2016, the company has maintained its residential MW deployed guidance of 350 MW–450MW.
In the Commercial segment, the company anticipates deploying 60MW–70 MW in 2Q16. For 2016, SunPower anticipates deploying a total of 350 MW–450 MW under its Commercial segment.
In its Power Plant segment, the company has a 2Q16 deployed guidance of 220 MW–230 MW. For 2016, the company maintained a deployed guidance of 800 MW–1,000 MW.
The revenues of upstream solar (TAN) companies like First Solar (FSLR), SunEdison (SUNEQ), SunPower (SPWR), Trina Solar, and Canadian Solar (CSIQ) largely depend on the completion of their existing project pipelines and their future project bookings. SunPower thus intends to grow its revenue by actively developing its mid-stage project pipeline and by acquiring new projects at advanced stages.
In the next part of this series, we’ll look at SunPower’s 1Q16 segmental revenue.
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